All loans must be repaid, and all loans charge interest. The amount of interest charged, and when you pay, depends on the type of loan (Subsidized vs. Unsubsidized) you receive and when it is disbursed. So how much interest are you being charged? Unfortunately, there is no easy answer. Federal regulations have flip-flopped over the years with variable and fixed rates on student loans, so your interest rate depends on when your loans were disbursed. But rest assured, you will have to pay interest on your loans no matter what! Interest rates are set each July 1 for the following year. Beginning July 1, 2006, the loan interest rate for deferment and repayment has been fixed at 6.8%. If you took out student loans prior to July 1, 2006, your interest rate for those loans is different. There is a chart on FinAid.org that identifies the interest rates depending on when your loan was disbursed.

Not sure when your loans were disbursed? Check out the National Student Loan Data System (NSLDS) to get a listing (and print out) of federal Subsidized and Unsubsidzed Loans. This report will also include any PLUS loans taken out in your name or on your behalf. Keep in mind that private educational loans will not appear on this report. NSLDS provides a wealth of information about your processed loans.

Once you have accessed NSLDS, you must:

1. click on Financial Aid Review,
2. read the Terms and then Accept
3. select your form of encryption or click Okay if you are comfortable with your current system.
4. enter your login information, including your federal PIN number

Once this information is submitted, you'll see a list of loans taken out in your name.

• The disbursed amount is the amount that was disbursed to you based on the processed loan amount
• The outstanding principle is the balance of the loan you owe, including capitalized interest
• The outstanding interest is what you have accrued so far

By clicking on the + sign to the left of the loan, you will get information about your interest rate, status of loan, and lender information. For the Stafford Loan program, it's very possible that one agency guaranteed your loan; another agency acts as the lender, but has yet another agency who is servicing your loan. Talk about confusing! If you have questions regarding a certain Stafford loan, you should refer to the acting lender information as the contact. For Direct Lending, the Department of Education is your "lender".

Let me define a few terms that may not be clear on the report:

• In-school deferment: your loan principle (and interest if Unsubsidized loan and you not making quarterly interest payments) are deferred, meaning no payments are due because you are still attending college on at least a half-time basis
• Forbearance: this can be requested if you encounter economic hardship while in repayment of your student loan. If approved by your lender, the principle is deferred for a specified amount of time, and you will make interest-only payments. It is also possible to make partial payment of the principle and interest, if you are able
• Repyament: this is the process where you are repaying your student loans, including principle and interest
• Grace period: after you graduate or cease to be at least a half-time student, you are given a six-month grace period before repayment of your Stafford loan of Direct loan begins. No payments are required during the grace period, but interest will continue to accrue on Unsubisidized loans if you are not making the quarterly interest payments.
• Deferment: another special process that usually occurs after you begin repayment. Deferment is different from forbearance in that a deferment will defer both principle and interest. A student may request a deferment from the lender. Loans will also go into deferment if you return to college as a full time student. If you are returning to school as a half-time student, check with your lender to see if you qualify for the deferment.

I apologize for not providing more concrete information about interest rates, but the rates vary. Utilize the NSLDS information to monitor your student loan balance. Changes in your loan may take 1-2 months to show on NSLDS, as lenders update this information periodically rather than immediately. However, if you feel there is information on NSLDS that is inaccurate, contact your financial aid office immediately. Your school can work with the lender to resolve any problems.

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